Cash from Treasury to cut Gauteng toll costs
Ann Crotty A ONCE-OFF R5.75 billion contribution from the government is a key part of the plan to reduce the proposed toll for light vehicle users of Gauteng’s freeways from 66c a kilometre to 30c. The plan will also exempt taxis and other public transport operators from payment of toll fees.
Minister of Finance Pravin Gordhan told a media conference yesterday that all of the government parties involved had “applied their minds” to crafting the best possible solution to the controversy surrounding the introduction of toll fees for users of the Gauteng freeway system.
He appealed to all parties that had protested against the initial toll fee proposal to “help make this (revised proposal) work”, adding: “We’ve heard your contributions and we thank you for them, now we must make this work.”
Gordhan described the proposal as “an extremely generous and balanced way of responding to the concerns raised” while noting that it reaffirmed the government’s commitment to the “user pays” principle.
In addition to the government’s R5.75bn contribution, the debt of the SA National Roads Agency Limited (Sanral) would increase to R59bn. The contribution will allow tariffs to be reduced for light vehicles with e-tags to 30c/km from 66c; to 20c for motorcycles; to 75c for nonarticulated trucks and R1.51 for articulated trucks.
Frequent users will have their toll fees capped at R550 a month and heavy vehicles will be offered a discount of 20 percent if they travel at particular times of the day. The provincial government has also undertaken to ensure that alternate routes are upgraded.
Gordhan said tolling would begin on April 30.
Deputy Finance Minister Nhlanhla Nene said the money the government was prepared to contribute to the solution had been made possible by an improvement in collections and other savings, including Armscor-related savings.
“We need a solution to this matter as quickly as possible, and this is it,” said Nene. It should not be seen as an indication of a formula that would be used for future toll roads.
Gary Ronald, the head of public affairs, AA: “We are convinced that despite the latest offering from the government, the cost to the consumer, as far as the Gauteng tolls are concerned, is going to hit home hard when commodity prices increase as well as transport costs.
“It is the Automobile Association’s (AA’S) belief that a dedicated road fund be established or, at the very least, money collected through the fuel levy be ring-fenced for transport, road safety and transport infrastructure projects.”
Cliff Watson, the executive tax manager, Grant Thornton Johannesburg: “The special appropriation of R5.8 billion towards the debt related to the project is encouraging. The idea of the halving and capping of these fees is welcomed. However, it should be taken into account that a person with an e-tag would need to travel approximately 1 833km a month… to reach the cap of R550 a month.” page 10